The four phases of a business cycle, and their correct order, are:
A) peak, trough, recession, and recovery.
B) peak, recovery, trough, and recession.
C) peak, recession, trough, and recovery.
D) peak, recession, recovery, and trough.

Question

Quizplus · Accepted Answer

The correct order of the four phases of a business cycle is: peak (the highest point between the end of an economic expansion and the start of a contraction), recession (a period of economic decline), trough (the lowest point of a recession before a recovery begins), and recovery (a period of increasing business activity signaling the end of a recession).

The Four Phases of a Business Cycle, and Their Correct